5% hike in electricity bills approved

CUSTOMERS are facing hikes of 4%-5% in their electricity bills as the Energy Regulator has given its approval to the placing of a €157 million levy on all electricity users.

Pharmachemical Ireland, a branch of IBEC, has also written to the Commission for Energy Regulation (CER) warning that the levy will cost between 550 and 800 jobs as multinational companies are under pressure from head office to cut costs. Up to 50,000 direct and indirect jobs are provided for by this sector.

At present, the Public Service Obligation (PSO) levy is charged at a rate of 0%. However, the CER wants up to €157m in levies to be paid by consumers to electricity suppliers between October 2010 and October 2011.